Supreme Court Denies New Hampshire Income Tax Lawsuit

On June 28, 2021, the U.S. Supreme Court declined to hear a lawsuit filed by the State of New Hampshire asserting that a pandemic-era Massachusetts’s income tax policy was unconstitutional. At issue was a temporary tax rule adopted by Massachusetts that sought to maintain the pre-pandemic status quo for filing obligations, and thereby spare Massachusetts employers of additional compliance burdens. Under the rule, non-resident employees who worked in Massachusetts before the state of emergency continued to be taxed in the same proportion as during the immediate pre-pandemic period, regardless of whether employees completed work in-person or remotely. The Supreme Court denied New Hampshire’s motion for leave to file bill of complaint.

This update is provided for informational purposes only and should not be considered legal or tax advice.